Having decimated the middle class for the better part of 40 years straight, the RepubliCon Senate is now working double overtime to deliver one more tax cut for the obscenely wealthy and deserving bailout class. Who are leaning ALL IN 1929-style on the fake reflation trade. Because they're not half smart enough to figure out that they've made economic reflation totally impossible.
The surprise will be well worth the wait. After all, who could warn them?
"This is a big, fat, beautiful bubble and I alone deserve full credit"
Three days in a row the world has sent an overnight warning to U.S. markets. Three days in a row it got bought with both hands...
All that matters is the tax cut trend-line:
The big story today was the ongoing implosion of General Electric. The lamestream media wants everyone to believe that this is a GE specific problem:
It just might not turn out that way...
What is interesting is that despite everyone saying that volatility will never rise again, volatility futures have been rising for a month:
And volume. Not so much breadth though...
In the spirit of continuous denial, Zerohedge just signaled that Bitcoin scalability problems have been magically fixed, by throwing good money after bad away at the casino. Because that's how all problems get fixed around here...
As long as Bitcoin was primarily a speculative toy, no one seemed to care that Bitcoin fees were growing at an exponential rate, currently at $18 per average transaction. Imagine buying a cup of coffee and getting charged $18 just to make payment:
How Bitcoin Cash Is Driving Up Bitcoin Transaction Fees
$18 For A $3 Transaction:
"A big concern for the developers of Bitcoin Cash was the lack of hashpower that would switch to the other chain. If a very small percentage switched, then the network would be halted, very few blocks would be created. Their solution to this problem was to add an Emergency Difficulty Adjustment mechanism, or EDA. This works in a way that if the average number of blocks in a period is too low, it will immediately adjust to a lower difficulty. This is a problem for one huge reason. The miners want to mine the most profitable chain. So if they go and mine Bitcoin for a while, allow for the EDA to lower the difficulty to next to nothing, then can simply switch the chain and mine blocks at an average of two or three ever ten minutes. Once the difficulty goes back up to pre-EDA levels, then swap back to Bitcoin and let the process repeat itself. These difficulty oscillations are making block creation times very slow on the Bitcoin Cash network and are also resulting in a growing backlog of transactions in Bitcon as well. This means less transactions per second and a higher cost to have your transaction included in the next block."
ZH: The Coast Is Clear
Japan has bought this same level for three days straight. Cue panic:
Then again, they've been Gartman'd by fake reflation before. As has the entire world, over and over and over and over and over and over again. The only consistent theme since 2008 - assuming economic reflation is imminent by the same people who made it impossible aka. "Republicans".
August 1, 2011
Gold Will Be Well Over $2,000 On Further QE